Legislature(2013 - 2014)BARNES 124

01/23/2014 01:00 PM House TRANSPORTATION


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01:06:40 PM Start
01:08:58 PM Presentation by Pat Kemp, Commissioner on Department of Transportation & Public Facilities
03:01:25 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Joint w/ Senate Transportation TELECONFERENCED
Presentation by Commissioner, Pat Kemp,
Dept. of Transportation & Public Facilities
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                        January 23, 2014                                                                                        
                           1:06 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
HOUSE TRANSPORTATION                                                                                                            
                                                                                                                                
 Representative Peggy Wilson, Chair                                                                                             
 Representative Doug Isaacson, Vice Chair                                                                                       
 Representative Eric Feige                                                                                                      
 Representative Lynn Gattis                                                                                                     
 Representative Craig Johnson                                                                                                   
 Representative Bob Lynn                                                                                                        
 Representative Jonathan Kreiss-Tomkins                                                                                         
                                                                                                                                
SENATE TRANSPORTATION                                                                                                           
                                                                                                                                
 Senator Dennis Egan, Chair                                                                                                     
 Senator Anna Fairclough                                                                                                        
 Senator Click Bishop                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
SENATE TRANSPORTATION                                                                                                           
                                                                                                                                
 Senator Fred Dyson, Vice Chair                                                                                                 
 Senator Hollis French                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION   BY   COMMISSIONER,   PAT   KEMP,   DEPARTMENT   OF                                                               
TRANSPORTATION & PUBLIC FACILITIES                                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
PAT KEMP, Commissioner                                                                                                          
Office of the Commissioner                                                                                                      
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented an overview of  the Department of                                                             
Transportation & Public Facilities (DOT&PF).                                                                                    
                                                                                                                                
JOHN BINDER, Deputy Commissioner                                                                                                
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Presented an overview of  the Department of                                                             
Transportation & Public Facilities (DOT&PF).                                                                                    
                                                                                                                                
KIM RICE, Deputy Commissioner                                                                                                   
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions  during an overview of the                                                             
Department of Transportation & Public Facilities (DOT&PF).                                                                      
                                                                                                                                
JEFF OTTESEN, Director                                                                                                          
Division of  Program Development, Department of  Transportation &                                                               
Public Facilities (DOT&PF)                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented an overview of  the Department of                                                             
Transportation & Public Facilities (DOT&PF).                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:06:40 PM                                                                                                                    
                                                                                                                                
CHAIR  DENNIS EGAN  called the  joint meeting  of the  Senate and                                                             
House Transportation  Standing Committees  to order at  1:06 p.m.                                                               
Representatives  Gattis,  Isaacson,  Lynn,   and  P.  Wilson  and                                                               
Senators  Bishop and  Egan were  present  at the  call to  order.                                                               
Representatives  Kreiss-Tomkins, Johnson,  and Feige  and Senator                                                               
Fairclough arrived as the meeting was in progress.                                                                              
                                                                                                                                
^Presentation  by   Pat  Kemp,  Commissioner  on   Department  of                                                               
Transportation & Public Facilities                                                                                              
     Presentation by Commissioner, Pat Kemp, Department of                                                                  
               Transportation & Public Facilities                                                                           
                                                                                                                                
1:08:58 PM                                                                                                                    
                                                                                                                                
SENATOR EGAN announced  that the only order of  business would be                                                               
an  overview  of  the  Department   of  Transportation  &  Public                                                               
Facilities by Commissioner Pat Kemp.                                                                                            
                                                                                                                                
1:09:50 PM                                                                                                                    
                                                                                                                                
PAT  KEMP, Commissioner,  Department of  Transportation &  Public                                                               
Facilities, recalled that,  in the last year,  the department had                                                               
created  an   executive  management   team  which   included  the                                                               
deputies,   the  administration   director,   and  the   regional                                                               
directors.   He  declared that  these monthly  team meetings  had                                                               
worked well, especially for reviewing  the department as a whole.                                                               
He spoke  about the benefit  of intellectual capital,  many years                                                               
of  experience at  the  top  of the  department,  and the  unique                                                               
opportunity   this   offered   to   improve   services,   improve                                                               
efficiencies, and move back to the  core mission.  He declared it                                                               
to be  a cohesive management  team, with everyone  working toward                                                               
solutions.                                                                                                                      
                                                                                                                                
1:12:36 PM                                                                                                                    
                                                                                                                                
COMMISSIONER KEMP  reflected that  there was now  better internal                                                               
and external communication, specifically  between the regions and                                                               
headquarters.  He relayed that,  although there were more federal                                                               
mandates  which created  additional  costs,  the Federal  Highway                                                               
Administration  (FHWA) and  the  Federal Aviation  Administration                                                               
(FAA)  were  working  in  conjunction   with  the  Department  of                                                               
Transportation &  Public Facilities  (DOTPF), which had  also led                                                               
to improved communications  with the US Army  Corps of Engineers.                                                               
He anticipated  better priority on  projects.  He  declared that,                                                               
as DOTPF  was so large,  it was  more difficult to  effect change                                                               
within.                                                                                                                         
                                                                                                                                
1:15:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE asked  for the  reason that  these improved                                                               
communications had occurred.                                                                                                    
                                                                                                                                
COMMISSIONER KEMP  offered his belief  that it was  a combination                                                               
of reasons,  as a  variety of  federal decisions  did not  fit in                                                               
Alaska.   He offered an  example of the federally  mandated glide                                                               
ratio  for airports,  noting that  most  of the  airports in  the                                                               
Lower 48  had roads  connected with the  airports, which  was not                                                               
the case in  Alaska.  He shared that  improved communications now                                                               
allowed  him  to contact  the  federal  agencies to  explain  the                                                               
differences in Alaska.                                                                                                          
                                                                                                                                
COMMISSIONER  KEMP,  reflecting  on the  difficulty  of  "pulling                                                               
everyone together" in  a large, very diverse  agency, stated that                                                               
the  philosophy for  communication was  now in  place, which  had                                                               
started at the top of the department.                                                                                           
                                                                                                                                
1:17:50 PM                                                                                                                    
                                                                                                                                
COMMISSIONER KEMP  listed the  accomplishments of  the department                                                               
in  2013, which  included  maintenance of  the  highways and  the                                                               
airports, page 3 of the  handout titled "Overview for 2014 Alaska                                                               
Legislature." [Included  in members'  packets]  He  declared that                                                               
the  department did  the things  it needed  to do.   He  directed                                                               
attention  to  a   list  that  he  had   compiled,  titled  "2013                                                               
Noteworthy  Milestones,"  [Included  in members'  packets]  which                                                               
were a  direct result  of the  organization and  knowledge within                                                               
the department.                                                                                                                 
                                                                                                                                
1:19:19 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  KEMP pointed  to  item 2  of  the "2013  Noteworthy                                                               
Milestones."   He  explained  that the  policy  for repaving  the                                                               
surfaces of  roads with more than  5000 vehicles per lane  with a                                                               
hard rock aggregate  had reduced rutting, pointing  to Egan Drive                                                               
as  an example.   He  surmised that  this had  resulted in  three                                                               
times the roadway  life, which has been a huge  cost savings.  He                                                               
reported  that both  DeBarr Road  and Dimond  Boulevard had  also                                                               
been repaved during the previous  summer with hard rock aggregate                                                               
from Cantwell.                                                                                                                  
                                                                                                                                
1:21:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE asked  where additional  sites of  the hard                                                               
rock aggregate were located.                                                                                                    
                                                                                                                                
COMMISSIONER KEMP  replied that Haines  and Dupont were  the only                                                               
other sites,  and that additional  hard rock had been  brought in                                                               
from British Columbia.  He explained  that the Dupont rock was on                                                               
the shore,  and described it as  "the toughest rock that  made it                                                               
over all  the eons to  shore from  the mountains, in  the coastal                                                               
mountains ... only the strongest rock survived."                                                                                
                                                                                                                                
1:23:12 PM                                                                                                                    
                                                                                                                                
COMMISSIONER KEMP directed  attention to item 5  of the milestone                                                               
list, which  discussed the modified  speed limit policy  to allow                                                               
for  more reasonable  driving speeds  on  remote rural  roadways,                                                               
including the Glenn, Richardson, and  Alaska Highways.  He opined                                                               
that  this  incorporated more  safety  on  the roadways,  as  the                                                               
theory was that the users could set the speed limits.                                                                           
                                                                                                                                
1:24:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ISAACSON  expressed  his  support  for  what  the                                                               
department had  done.  He  said that increasing the  speed limits                                                               
from Salcha  to Fairbanks could  also be  helpful.  He  asked for                                                               
clarification  that  the  additional  previous  requirements  had                                                               
lessened safety, and,  if the faster speeds were  safer, could it                                                               
be done elsewhere.                                                                                                              
                                                                                                                                
COMMISSIONER  KEMP replied  that safety  had been  increased when                                                               
the speed limit was brought under  a certain policy.  He declared                                                               
that  drivers would  drive  at  the speed  limit  they were  most                                                               
comfortable with, and he suggested  that overall studies reported                                                               
that 85 percent  of the drivers "drive the right  speed" which he                                                               
labelled  the  "85th  percentile   speed."    He  explained  that                                                               
artificially lowering this speed limit  resulted in more rear end                                                               
accidents due to disparate speeds.                                                                                              
                                                                                                                                
REPRESENTATIVE ISAACSON asked if  there was consideration for the                                                               
aforementioned Salcha to Fairbanks route.                                                                                       
                                                                                                                                
COMMISSIONER KEMP  replied that the Fairbanks  North Star Borough                                                               
(FNSB)  had requested  to maintain  the artificially  lower speed                                                               
limit.  He  expressed his discomfort at driving  the posted speed                                                               
limit of 55  mph on that stretch  of roadway.  He  stated that 85                                                               
percent of the  drivers on this roadway would drive  at the speed                                                               
they felt most comfortable.                                                                                                     
                                                                                                                                
REPRESENTATIVE ISAACSON  pointed out that  the FNSB did  not have                                                               
enforcement power on that roadway,  and that the first responders                                                               
came  from the  City  of North  Pole.   He  suggested that  DOTPF                                                               
engage with the municipalities for further discussion.                                                                          
                                                                                                                                
1:28:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE  shared   that  an  unofficial  pre-session                                                               
survey in his district indicated  that the change of speed limits                                                               
had  not changed  driver  activity,  and that  it  had been  well                                                               
received.   He shared that he  maintained the 55 mph  speed limit                                                               
on the aforementioned  Salcha roadway, as there  were always City                                                               
of North Pole police cruisers present.                                                                                          
                                                                                                                                
COMMISSIONER KEMP expressed that he  had also observed the police                                                               
cruisers, although it was difficult for him to slow to 55 mph.                                                                  
                                                                                                                                
1:29:33 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  KEMP  referred  to  item number  3,  the  Anchorage                                                               
Airport  master plan,  noting that  he was  "not around  when the                                                               
department first  came out with a  master plan."  He  opined that                                                               
the department may  have jumped too quickly to  a conclusion, and                                                               
that the  former plan  had been  untenable.   He stated  that the                                                               
current plan  more accurately described  a means to  maximize the                                                               
existing  assets, until  an additional  runaway was  constructed.                                                               
He offered  his belief that  the department  had done a  good job                                                               
with  this revised  plan.   He  declared that  the 16  noteworthy                                                               
milestones were  a list that he  had compiled of items  that went                                                               
above  and beyond  the normal  course of  business, reflecting  a                                                               
product of "the  way we're organized and the way  we're trying to                                                               
manage the department."                                                                                                         
                                                                                                                                
1:31:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ISAACSON   suggested  increasing   the  marketing                                                               
efforts of Fairbanks as it was  on "the Great Circle" and in some                                                               
instances,   closer   than   Anchorage  to   some   destinations.                                                               
Referring to item  16, he asked about the success  for the use of                                                               
the salt  and beet  brine solution statewide,  and what  were the                                                               
storage  considerations.   He  asked  if  the state  should  grow                                                               
beets.                                                                                                                          
                                                                                                                                
COMMISSIONER  KEMP replied  that there  had been  experimentation                                                               
with  the solution  throughout Alaska,  and  although there  were                                                               
some  problems in  colder temperatures,  it was  working well  in                                                               
some parts  of Anchorage  and the Kenai  Peninsula.   He declared                                                               
that success  was dependent on  the rates of application  and the                                                               
operator training.   He opined  that, in  the long run,  it would                                                               
save  money.   He  reported  that  highway  ice-ups were  a  huge                                                               
problem in  Fairbanks, and that  this solution worked well  as an                                                               
anti-icing remedy.                                                                                                              
                                                                                                                                
REPRESENTATIVE ISAACSON  asked if there were  any storage issues,                                                               
such as chemical reactions, to preclude bulk purchasing.                                                                        
                                                                                                                                
COMMISSIONER KEMP  replied that  he was  unaware of  any chemical                                                               
reaction,  but that  costs for  the proposed  salt storage  sheds                                                               
would be recovered within a year or two due to the bulk savings.                                                                
                                                                                                                                
CHAIR EGAN asked if the anti-icing solution was less corrosive.                                                                 
                                                                                                                                
COMMISSIONER KEMP expressed  his agreement.  He  added that there                                                               
were suggestions  that the  solution had  attracted moose  in the                                                               
Anchorage Bowl  area; however,  research in  other areas  did not                                                               
support this.                                                                                                                   
                                                                                                                                
CHAIR P. WILSON  pointed out that a reduction in  the use of sand                                                               
had led to savings for the municipalities during the clean-up.                                                                  
                                                                                                                                
COMMISSIONER KEMP  expressed his agreement, and  stated that this                                                               
would also save  money in the long  term.  He said  that 2013 had                                                               
been a very good  year, but the MAP 21 challenge  still had to be                                                               
addressed,  slide 4  "Where are  We  Headed?".   He reminded  the                                                               
committee that,  last year, he  had suggested either  funding the                                                               
projects  with  state  dollars,  or  eliminating  projects.    He                                                               
declared that this  was now at least a $600  million problem.  He                                                               
stated  that the  state  was now  overprescribed  on its  non-NHS                                                               
routes, as  a result  of MAP-21, in  which Congress  had dictated                                                               
that funding  be directed toward commerce  and freight corridors.                                                               
These NHS  routes included  the mainline  ferry system  and other                                                               
routes beyond the secondary and community routes.                                                                               
                                                                                                                                
1:38:06 PM                                                                                                                    
                                                                                                                                
CHAIR EGAN asked for a definition to community route.                                                                           
                                                                                                                                
COMMISSIONER KEMP pointed to the  North Douglas Highway as a non-                                                               
NHS community route.                                                                                                            
                                                                                                                                
CHAIR EGAN asked for clarification  whether Egan Drive was an NHS                                                               
route.                                                                                                                          
                                                                                                                                
COMMISSIONER KEMP replied that this  included Egan Drive, as well                                                               
as most  of the  major corridors  in the north.   He  pointed out                                                               
that the  Anchorage Bowl  was not affected  due to  the Anchorage                                                               
Metropolitan  Area  Transportation  Solutions (AMATS),  but  that                                                               
many routes  in the Matanuska-Susitna  Borough were non-NHS.   He                                                               
explained that  determination was  by a complicated  formula, but                                                               
the  DOTPF had  to  strive  for solutions.    He  noted that  the                                                               
statewide  revenue  problem  and  lack  of  state  funding  could                                                               
necessitate changes.                                                                                                            
                                                                                                                                
1:39:35 PM                                                                                                                    
                                                                                                                                
COMMISSIONER KEMP  stated that, although his  department could do                                                               
anything,  it  takes  time  as  there  was  a  finite  amount  of                                                               
resources.    He declared  that  DOTPF  was working  toward  more                                                               
efficiency.                                                                                                                     
                                                                                                                                
1:40:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTIS   asked  what  type   of  extra-curricular                                                               
activities would be phased out.                                                                                                 
                                                                                                                                
COMMISSIONER KEMP,  in response, reported that  statewide mapping                                                               
would  be   transferred  to  Department  of   Natural  Resources,                                                               
although DOTPF  would continue  to provide  support with  its GIS                                                               
system, which was tied to federal program requirements.                                                                         
                                                                                                                                
1:40:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ISAACSON  commented  that  DOTPF  had  been  very                                                               
supportive of  the overall  state mapping  project, and  he hoped                                                               
that the department would continue to share the information.                                                                    
                                                                                                                                
COMMISSIONER KEMP  clarified that  the department  was continuing                                                               
its support  with that partnership.   He  gave an example  of the                                                               
Ambler road, a resource road,  and shared that the department had                                                               
retained its  partnership with Alaska Industrial  Development and                                                               
Export  Authority (AIDEA).    He stated  his  willingness to  let                                                               
these  extra-curricular projects  move  to  other agencies  which                                                               
could be more effective.                                                                                                        
                                                                                                                                
1:42:00 PM                                                                                                                    
                                                                                                                                
COMMISSIONER KEMP  declared that the department  was working more                                                               
closely  with  the  Alaska  State  Legislature,  especially  with                                                               
transportation  issues  in  the Matanuska-Susitna  Borough.    He                                                               
noted that the borough had  hired a transportation director, whom                                                               
the department  met with every few  months.  He opined  that good                                                               
changes were occurring.   He clarified that it  took between five                                                               
to ten years from project  inception to completion.  He expressed                                                               
his desire  to have  policies and structure  in place  that would                                                               
sustain the changes he had put into place.                                                                                      
                                                                                                                                
1:44:24 PM                                                                                                                    
                                                                                                                                
CHAIR EGAN  asked for an  update on the recently  stormed damaged                                                               
Gustavus dock.                                                                                                                  
                                                                                                                                
COMMISSIONER  KEMP pointed  out that  the dock  project had  been                                                               
implemented prior  to his tenure, and  that he was unsure  if the                                                               
existing dock  would suffice in  Gustavus.  He declared  that the                                                               
department would review the dock and work toward a solution.                                                                    
                                                                                                                                
1:45:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE, referring to item  15, the increased use of                                                               
herbicides, on  the "2013 Noteworthy  Milestones," asked  how the                                                               
change in  regulations had allowed  for this  to be counted  as a                                                               
milestone.                                                                                                                      
                                                                                                                                
COMMISSIONER KEMP  replied that,  although there was  the ability                                                               
to maintain  a good  pesticide program,  the new  regulations had                                                               
been more reasonable for working  through the process.  He shared                                                               
that other groups  wanted to piggyback on  the department permit.                                                               
He  declared that  this would  not result  in mass  spraying, but                                                               
rather  point  spraying  under  guardrails  and  other  difficult                                                               
places.   He stated that,  over the  long run, keeping  the brush                                                               
down would  save millions of  dollars and enhance safety,  and he                                                               
lauded the results of the last year.                                                                                            
                                                                                                                                
1:47:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE said  one  of the  biggest  hazards on  the                                                               
Richardson and Glenn Highways is  moose and vehicular collisions.                                                               
He  asked whether  herbicide application  has  been helpful  with                                                               
moose issues and if any decrease in collisions has occurred.                                                                    
                                                                                                                                
COMMISSIONER  KEMP  answered  that the  department  just  started                                                               
applying  pesticides last  year; however,  it will  take multiple                                                               
years to change  the plants to low-lying weeds  that will prevent                                                               
other brush from  emerging.  Initially, the  department will need                                                               
to  mechanically  remove  the  trees and  brush,  followed  by  a                                                               
maintenance application.  He offered  his belief  this will  be a                                                               
good thing for  the department since the  DOT&PF cannot currently                                                               
accommodate  its ongoing  brushing  problems.   For example,  the                                                               
department encounters  include roots growing under  the pavement,                                                               
shaded  areas,  and  brush  obscuring animals  so  they  are  not                                                               
visible  to  motorists.    He  reiterated  these  issues  can  be                                                               
addressed unless  something like  pesticide application  is done.                                                               
Most  states  have an  active  herbicide  program and  while  the                                                               
department has  the authority  to use chemicals,  it is  a little                                                               
behind the times.                                                                                                               
                                                                                                                                
1:48:52 PM                                                                                                                    
                                                                                                                                
CHAIR  P.  WILSON  shared  that some  of  her  constituents  have                                                               
expressed  concern that  runoff will  adversely impact  fisheries                                                               
and fish quality will be compromised  by the chemicals used.  She                                                               
asked the commissioner to elaborate  on potential impacts and the                                                               
types of herbicides being used.                                                                                                 
                                                                                                                                
COMMISSIONER  KEMP  said,  "Believe  me, I  don't  want  a  thumb                                                               
growing out  of my forehead  either."   He suggested a  fine line                                                               
exists between the DOT&PF's pesticide  use and the science behind                                                               
it  so  he   has  relied  on  the   Department  of  Environmental                                                               
Conservation's  (DEC's)  analysis with  respect  to  the type  of                                                               
herbicides to  use.  He suggested  the DEC could come  before the                                                               
committee to provide details on  the science aspects of pesticide                                                               
use.                                                                                                                            
                                                                                                                                
1:50:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ISAACSON  assumed [the  Moving Ahead  for Progress                                                               
in  the 21st  Century Act]  (MAP-21) and  [Fairbanks Metropolitan                                                               
Area Transportation  Solutions] (FMATS)  funding will  be covered                                                               
in Finance subcommittee meetings.                                                                                               
                                                                                                                                
COMMISSIONER  KEMP responded  that  the  department is  currently                                                               
working  on the  funding issues.   He  explained federal  funding                                                               
expenditure  parameters  have changed  and  MAP-21  funds can  no                                                               
longer be  spent on  some projects as  previously allowed  by the                                                               
Federal  Highway  Administration   (FHWA).    Typically,  charges                                                               
accrue for the  design or permitting process as  the DOT&PF works                                                               
on projects.  When the  DOT&PF cannot complete projects the state                                                               
must reimburse  the federal government;  however, he  offered his                                                               
belief  that  since MAP-21  instituted  the  funding changes  the                                                               
state basically  will have a  "free pass" on reimbursements.   He                                                               
said  the  department has  currently  been  working with  federal                                                               
agencies but must now hold  serious discussions on MAP-21 funding                                                               
issues.                                                                                                                         
                                                                                                                                
1:52:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  for  an  assessment  of  pipeline                                                               
preparedness.   He related his understanding  from DOT&PF's prior                                                               
updates  that  substantial  funding  will be  needed  to  upgrade                                                               
roads, bridges,  and ports  in order  to transport  materials for                                                               
the  proposed pipeline,  for example,  on the  Dalton Highway  or                                                               
other routes.   He  asked whether the  department has  focused on                                                               
this.    He  would  like   the  DOT&PF's  assurance  that  during                                                               
construction an  [Environmental Impact Statement] (EIS)  will not                                                               
hold  up Alaska's  pipeline.   He  understood additional  funding                                                               
will  be  necessary  for  upgrades   for  bridges;  however,  the                                                               
pipeline is  closer to being  a reality  than ever before  and he                                                               
believes the DOT&PF will play a key role.                                                                                       
                                                                                                                                
COMMISSIONER  KEMP  offered to  answer  the  question in  several                                                               
segments.   First, when he  returned to DOT&PF  [as commissioner]                                                               
he reviewed the department's  pipeline infrastructure needs list.                                                               
He vaguely  recalled the figure  was over $1 billion;  however he                                                               
questioned  the need  for some  of the  expenditures.   Thus, the                                                               
DOT&PF revisited  and examined the infrastructure  needs list and                                                               
internally  agreed on  the anticipated  needs.   For example,  he                                                               
recalled  one item  was  to  replace a  truss  bridge across  the                                                               
Gerstle  River since  it couldn't  handle  the substantial  loads                                                               
necessary  for the  pipeline  use.   In  its  review, the  DOT&PF                                                               
determined that loads  of this magnitude would  only happen every                                                               
few  months   so  instead  of   the  replacing  the   bridge,  an                                                               
alternative  solution  was found  -  trucks  could take  the  Tok                                                               
cutoff and Richardson Highway and bypass the bridge entirely.                                                                   
                                                                                                                                
COMMISSIONER  KEMP  continued.   Secondly,  during  the  pipeline                                                               
debate  period  the  DOT&PF  began work  to  repair  the  state's                                                               
bridges.  In  fact, he understood the Richardson  Highway will be                                                               
fully capable  of handling additional proposed  pipeline traffic.                                                               
Third, with  respect to  the pipeline, the  biggest issue  on the                                                               
Parks Highway  is ensuring  that regular  traffic will  be safely                                                               
accommodated.   Therefore, the DOT&PF  has worked  on significant                                                               
passing  lane projects  that will  allow trucks  to pull  over so                                                               
traffic can  pass.  Further,  although the  department previously                                                               
made a  commitment to  the Alaska  Trucking Association  (ATA) to                                                               
have  the Parks  Highway weight-restriction  free, he  determined                                                               
the  DOT&PF  would incur  significant  costs  for road  upgrades.                                                               
Additionally, he  determined that  weights must be  restricted in                                                               
the spring and fall.  He  has informed Aves Thompson, ATA, of his                                                               
findings  and  the  organization   accepts  this  decision.    He                                                               
recapped  that over  $100  million would  have  been required  to                                                               
upgrade   the  Parks   Highway  to   accommodate  perhaps   10-20                                                               
overweight vehicles  per year, but  other options exist,  such as                                                               
transportation  loads by  train.   He described  his department's                                                               
approach  has  been  to  take  a  common-sense  approach  on  the                                                               
proposed pipeline  issues and in  doing so in his  estimation the                                                               
infrastructure  is   fine,  the  department  is   ready  for  the                                                               
pipeline, and can react quickly to anything that might come up.                                                                 
                                                                                                                                
1:58:29 PM                                                                                                                    
                                                                                                                                
COMMISSIONER KEMP pointed out that  he recently received numerous                                                               
comments on  hauling double trailers  on the Glenn and  the Parks                                                               
[Highway] and  while the department will  consider these requests                                                               
he has concluded that safety "trumps" other considerations.                                                                     
                                                                                                                                
REPRESENTATIVE  JOHNSON  responded  that  he  is  "tickled"  with                                                               
Commissioner  Kemp's answer.   He  recalled DOT&PF's  anticipated                                                               
pipeline upgrade cost estimates  were approximately $1.6 billion.                                                               
Thus,  to have  the department  indicate it  is ready  represents                                                               
great news.  He commended  Commissioner Kemp for his common-sense                                                               
approach efforts  on the issues, especially  noting the magnitude                                                               
of  anticipating  a proposed  pipeline  project.   He  asked  the                                                               
commissioner to review  his figures and let  the legislature know                                                               
if anything changes.                                                                                                            
                                                                                                                                
2:00:22 PM                                                                                                                    
                                                                                                                                
SENATOR BISHOP thanked Commissioner  Kemp for his timely response                                                               
to inquiries.   He has particularly  appreciated the department's                                                               
leadership with  respect to  the apprenticeship  opportunities on                                                               
DOT&PF projects since it trains  the next generation of Alaskans.                                                               
He commended the DOT&PF on  its response to a Glennallen project,                                                               
in  which  a local  contractor  had  expressed concerns  and  the                                                               
matter  was handled  timely.   He further  commended Commissioner                                                               
Kemp  on  the  "tow  plow"  accommodations  since  these  changes                                                               
represent another example of cost savings to the state.                                                                         
                                                                                                                                
2:01:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE reiterated similar  gratitude related to his                                                               
legislative  district.   As the  Richardson Highway  improves and                                                               
becomes capable of handling loads,  he also expressed an interest                                                               
in the  department applying some funds  to reconstruction efforts                                                               
and  safety improvements  on the  last remaining  section -  mile                                                               
66.5 to  mile 92 - of  the Glenn Highway.   Significant twist and                                                               
turns, as  well as  falling rocks create  problems and  have been                                                               
one  of  the  major  sources   of  complaints  in  the  district.                                                               
Secondly, he mentioned that outhouse  closures [on the Richardson                                                               
Highway] present  a problem for  motorists, in  particular, since                                                               
the  Paxson Lodge  has closed.    It's approximately  a 4.5  hour                                                               
drive from  Delta Junction  to Glennallen,  with few  options for                                                               
motorists in need  of restroom facilities.   He acknowledged some                                                               
outhouses  are available,  although  he was  unsure whether  they                                                               
were  DOT&PF facilities.   He  requested that  more outhouses  be                                                               
open for the public's use during the winter.                                                                                    
                                                                                                                                
COMMISSIONER  KEMP admitted  a disparity  on restrooms  currently                                                               
exist, noting that  in the Northern Region  restrooms are usually                                                               
kept  open, but  are  shut  down in  the  Central  Region in  the                                                               
winter.  He said this item  is on the department's list of things                                                               
to review for consistency.  He  agreed that it's best to keep the                                                               
facilities open, although  some of the facilities  are managed by                                                               
the  Department of  Natural Resources  (DNR).   He said  he fully                                                               
understands the issue.                                                                                                          
                                                                                                                                
REPRESENTATIVE FEIGE  reiterated that the Paxson  Lodge was often                                                               
the rest stop but is now closed.                                                                                                
                                                                                                                                
2:04:58 PM                                                                                                                    
                                                                                                                                
JOHN BINDER, Deputy Commissioner,  Department of Transportation &                                                               
Public Facilities, introduced himself.                                                                                          
                                                                                                                                
COMMISSIONER KEMP explained that  the former deputy commissioner,                                                               
Mr. Hatter,  left the  department to  take a  job in  the private                                                               
sector.  Mr. Binder worked  last summer as the operations manager                                                               
for  the Statewide  Aviation, with  jurisdiction  over 250  rural                                                               
airports.  He's recently begun his job as deputy commissioner.                                                                  
                                                                                                                                
SENATOR BISHOP welcomed him.                                                                                                    
                                                                                                                                
2:06:41 PM                                                                                                                    
                                                                                                                                
MR. BINDER  offered to  provide a  PowerPoint update  on DOT&PF's                                                               
Alaska's aviation  system.  He  said aviation is  fundamental and                                                               
critically  important  to Alaska.    He  turned to  the  DOT&PF's                                                               
mission statements, reading, "Keep  Alaska moving through service                                                               
and  infrastructure."   Under  the  mission's  umbrella, the  two                                                               
aviation  components  have  developed purpose  statements.    The                                                               
Alaska  International Airport  System's (AIAS)  mission statement                                                               
reads:  "To keep  Alaska flying  and thriving,"  which emphasizes                                                               
the business enterprise role in  Alaska's economy.  The Statewide                                                               
Aviation  (SWA)  services  many rural  communities  without  road                                                               
access.  SWA's  mission statement reads: "To  sustain and improve                                                               
the quality of life throughout Alaska."                                                                                         
                                                                                                                                
2:07:50 PM                                                                                                                    
                                                                                                                                
MR. BINDER,  noting he  oversees the AIAS  and the  rural airport                                                               
systems, described the organization  of DOT&PF's aviation program                                                               
[slide  3].   Overall, the  DOT&PF  owns 254  airports, with  252                                                               
airports falling under the rural  airport system - often referred                                                               
to as Statewide  Aviation or (SWA).  The AIAS  was established 50                                                               
years  ago,   when  legislators  recognized  the   advantages  of                                                               
operating the  two major airports  as a system instead  of having                                                               
the  two   airports  competing  with   one  another   [slide  4].                                                               
Operating  as a  system  the aviation  fund  has been  completely                                                               
self-sustaining through  the rates and  fees charged to  the AIAS                                                               
users.   Therefore,  general fund  dollars are  not requested  or                                                               
needed  to operate  the  airports.   However,  this requires  the                                                               
DOT&PF must  interact daily  with its  customer base  and operate                                                               
with  an agile  and market-completive  business enterprise  - one                                                               
that is "high-value."   It must also demonstrate  to the airlines                                                               
that the AIAS operates by being  good stewards of the rates users                                                               
pay to use the system.                                                                                                          
                                                                                                                                
2:09:01 PM                                                                                                                    
                                                                                                                                
MR.  BINDER turned  to slide  5, entitled,  "Annual Revenues  and                                                               
Operations,  Maintenance and  Debt Costs  - Funded  from Customer                                                               
Charges."    In  fiscal  year   2013  (FY  2013),  AIAS  received                                                               
approximately   $114  million   in  annual   operating  revenues,                                                               
including interest  income and  passenger facility  charges (PFC)                                                               
collected.   The AIAS  has approximately  $1.5 billion  in assets                                                               
and obtains an  average of approximately $50 million  per year in                                                               
federal  capital contributions  through  the Airport  Improvement                                                               
Program (AIP) funds.  Rate  and fee charges assessed to customers                                                               
are developed  and administered by  the passenger  terminal lease                                                               
and  operating  agreements  -  the  contracts  between  AIAS  and                                                               
individual  members of  the majority  of  its airline  customers.                                                               
The customers,  mainly air  carriers, recognize,  understand, and                                                               
endorse  these  legally  binding agreements.    These  agreements                                                               
allow  the DOT&PF  to address  rising costs  or lower  activity -                                                               
fewer take-offs and  landings - in a slowing  economy by imposing                                                               
adjustments to the rates and fees charged.                                                                                      
                                                                                                                                
2:10:16 PM                                                                                                                    
                                                                                                                                
MR.  BINDER turned  to  a chart  that  depicts monthly  revenues,                                                               
entitled, "Airfield Revenue Activity"  by certified maximum gross                                                               
take-off weight  over the past four  fiscal years [slide 6].   He                                                               
pointed out the red  line depicts FY 2014 to date.   He noted the                                                               
steady  decrease  in  revenue,  driven primarily  by  the  global                                                               
economy, airline fleet mix changes,  and competitor airports.  He                                                               
related that FY 2013 overall  experienced a 5 percent decrease in                                                               
revenue  from the  prior  year, and  FY 2014  is  down 1  percent                                                               
compared to last year for the same time period.                                                                                 
                                                                                                                                
2:10:42 PM                                                                                                                    
                                                                                                                                
MR. BINDER referred  to an increase in  passenger activity during                                                               
October and November  2013, which has helped to  mitigate some of                                                               
the  continuing drop  in cargo  [slide  7].   This chart  depicts                                                               
number  of passenger  enplanements or  the number  of people  who                                                               
boarded aircraft in  the past four fiscal years.   In contrast to                                                               
the cargo trend,  passenger traffic at the AIAS  has continued to                                                               
climb.   The department  continues to  work with  visitor bureaus                                                               
and  economic development  corporations in  Alaska to  help guide                                                               
the  long-term planning  in order  to capitalize  on this  market                                                               
opportunity.                                                                                                                    
                                                                                                                                
2:10:54 PM                                                                                                                    
                                                                                                                                
MR. BINDER turned to slide  8, entitled "Operating Agreement with                                                               
Air Carriers."   He characterized the new  operating agreement as                                                               
a significant achievement with thirty  airlines having signed the                                                               
agreement  to date.   Not  only has  this validated  the existing                                                               
agreement structure  but the new  agreement contains  several new                                                               
provisions,  including  increasing the  terms  from  five to  ten                                                               
years.   It also enhances  collaboration between the  airport and                                                               
the airlines  on issues  such as  capital projects,  debt service                                                               
handling,  and  shared  maintenance  responsibilities,  while  it                                                               
retains the  airline supported  financial protection  for payment                                                               
of system costs, as well  as preferential assignment of gates and                                                               
parking based on airport usage.   The airlines' primary interface                                                               
with the  AIAS is achieved  through the Airline  Airports Affairs                                                               
committee, which  conducts regular teleconferences  and quarterly                                                               
face-to-face conferences to address any air carrier concerns.                                                                   
                                                                                                                                
2:12:30 PM                                                                                                                    
                                                                                                                                
MR.  BINDER turned  to slide  9, entitled  "Strategic Planning  &                                                               
Marketing"  and   said  that  strategic  planning   is  vital  in                                                               
maintaining economic  viability in  the global marketplace.   The                                                               
AIAS continues  to conduct internal  and external  assessments in                                                               
order to identify  any areas that need  refinement or improvement                                                               
to  stay  competitive.   This  year's  strategic agenda  includes                                                               
improving  external  communications,  employing  development  and                                                               
integration  of  technologies  into  operations,  and  finalizing                                                               
business and marketing plans to  help guide strategic engagements                                                               
in   the  passenger   and   the   cargo  marketplace   worldwide.                                                               
Communication  with  state   agencies  and  economic  development                                                               
corporation continues  to be critical  as the state  promotes the                                                               
international  airports,  particularly  with Asian  carriers  who                                                               
account  for  more than  90  percent  of  all cargo  that  passes                                                               
through Anchorage and Fairbanks.                                                                                                
                                                                                                                                
2:13:22 PM                                                                                                                    
                                                                                                                                
MR.  BINDER said  that as  Commissioner Kemp  alluded to,  master                                                               
plans are  not only required  by Federal  Aviation Administration                                                               
(FAA)  regulations, but  they make  good sense  [slide 10].   The                                                               
planning  process   includes  comprehensive   public  engagement,                                                               
assessing numerous  future growth scenarios,  selecting preferred                                                               
options, and soliciting  public comment.  Both  the Anchorage and                                                               
Fairbanks  master  plans  are  scheduled  to  be  completed  this                                                               
summer.    The  phased-approach   plans  have  experienced  great                                                               
success thus far  and have gained overall community.   He pointed                                                               
out that the  links on the slide  provide additional information,                                                               
[as follows:                                                                                                                    
                                                                                                                                
     http://dot.alaska.gov/aias/news;                                                                                           
     http://pdcprojects.info/FAIMasterPlan;                                                                                     
     http://www.ancmasterplan.com].                                                                                             
                                                                                                                                
2:14:08 PM                                                                                                                    
                                                                                                                                
MR. BINDER  turned to slide  12 entitled "Rural System  Scope and                                                               
Scale."  He  explained that the rural system  contains all state-                                                               
owned airports  minus the  Anchorage and  Fairbanks international                                                               
airports  and  makes up  the  largest  aviation system  in  North                                                               
America.                                                                                                                        
                                                                                                                                
2:14:18 PM                                                                                                                    
                                                                                                                                
SENATOR  FAIRCLOUGH,  referring  back  to  slide  5,  related  to                                                               
terminal rents  and concessions  percentages and  dollar amounts,                                                               
asked for a  comparison for the past five years  on whether lease                                                               
rates have  increased or decreased in  the past five years.   She                                                               
further asked if any trending  on the airport revenues generated.                                                               
Additionally, she  asked to  speak to  the DOT&PF  off-line about                                                               
leasing   and    the   non-competition   clause    at   Anchorage                                                               
International Airport.                                                                                                          
                                                                                                                                
MR. BINDER offered to provide the information.                                                                                  
                                                                                                                                
2:15:32 PM                                                                                                                    
                                                                                                                                
MR.   BINDER   said   that   rural   contractors,   DOT&PF,   and                                                               
municipalities perform a tremendous  job by keeping this critical                                                               
lifeline open to communities throughout  the year.  As previously                                                               
mentioned,  airports provide  the  only practical  access for  82                                                               
percent of  Alaska's communities  that lie  off the  state's main                                                               
road system.                                                                                                                    
                                                                                                                                
2:15:54 PM                                                                                                                    
                                                                                                                                
MR. BINDER pointed  out that Alaska depends  significantly on the                                                               
FAA's Airport Improvement  Program (AIP) for the  majority of its                                                               
capital project funding  for the rural system.   Although funding                                                               
has declined  in the past  few years,  the current federal  FY 14                                                               
Omnibus bill as signed includes  full AIP funding, which had been                                                               
cut last  year by sequestration.   He noted the  primary projects                                                               
listed are expected to receive  capital funding over the next two                                                               
years  [slide 13].   Additionally,  the DOT&PF  has developed  an                                                               
Alaska  airport needs  directory  that  includes all  state-owned                                                               
airports.    The  directory provides  insight  into  construction                                                               
history, revenues, operating  costs, and existing infrastructure,                                                               
as  well as  well as  other details.   He  encouraged members  to                                                               
review   the   document  and   provide   the   DOT&PF  with   any                                                               
recommendations.   He commented  that he  has already  passed out                                                               
some  copies to  legislators.   The needs  directory document  is                                                               
located electronically  [at http://dot.alaska.gov/airport-portal-                                                               
newsres.shtml.]                                                                                                                 
                                                                                                                                
2:16:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FEIGE,  referring   to  slide   13,  asked   for                                                               
clarification on rural access.                                                                                                  
                                                                                                                                
MR.  BINDER responded  that the  rural access  encompasses items,                                                               
such as modifying  or lengthening the runway  to accommodate more                                                               
aircraft or  obstruction clearing  to enable  instrument approach                                                               
capabilities.    Most  of  the projects  listed  are  for  runway                                                               
extensions,   taxiway   rehabilitation,   and   several   airport                                                               
reconstructions, he said.                                                                                                       
                                                                                                                                
2:17:42 PM                                                                                                                    
                                                                                                                                
SENATOR BISHOP asked whether the  20-to-1 glide slope falls under                                                               
the rural access from federal directive.                                                                                        
                                                                                                                                
MR. BINDER, after consulting with [staff] answered yes, it does.                                                                
                                                                                                                                
2:17:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  asked for further clarification  on 20-to-1                                                               
glide slope.   He related  his understanding that it  referred to                                                               
the obstruction  clearance plane that  starts from the  center of                                                               
runway and increases by one foot slope every twenty feet out.                                                                   
                                                                                                                                
MR.  BINDER answered  that is  correct.   Of several  slopes that                                                               
affect  airports,  this  specific  20-to-1  issue  addresses  the                                                               
visible  glide  path from  the  missed  approach point  for  non-                                                               
precision  approaches beginning  200  feet from  the  end of  the                                                               
runway and starts up.                                                                                                           
                                                                                                                                
2:19:01 PM                                                                                                                    
                                                                                                                                
MR. BINDER turned  to slide 14, entitled  "Alaska Aviation System                                                               
Plan (AASP),"  which refers  to a five-year  AIP funding  plan to                                                               
assist  airport owners  to develop  a system-wide  20-year vision                                                               
and an  associated implementation plan.   This includes processes                                                               
and  products needed  to maximize  service  and efficiency  while                                                               
minimizing cost.   Many of the highlighted items on  slide were a                                                               
result  from  the  last  contract  ended  early  in  2013.    The                                                               
continuing  system plan  contract  began this  fall.   The  tasks                                                               
authorized  during   the  next  12  months   include  the  public                                                               
involvement   plan,   the   airport   Capital   Improvement   and                                                               
Maintenance  Program,  as  well   as  associated  workgroups  and                                                               
research.   These workgroups address  issues such as  the 20-to-1                                                               
glide slope, obstructions and obstacles, and airspace.                                                                          
                                                                                                                                
2:20:12 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON referred to one  item on slide 14, listed as 2008                                                               
AASP Phase  1, Stage 1  Report.   She asked whether  other phases                                                               
will follow or if it will all be done under Phase 1.                                                                            
                                                                                                                                
MR. BINDER  answered yes;  that phase 1  encompasses the  next 12                                                               
months of  the program and  assesses what will happen  during the                                                               
next five years.  Everything  that follows could be considered as                                                               
Phase 2, including DOT&PF's assessment of emerging issues.                                                                      
                                                                                                                                
2:21:16 PM                                                                                                                    
                                                                                                                                
SENATOR FAIRCLOUGH referred  to slide 14, to 2013  and the Alaska                                                               
Bypass Mail:   Preparing for Change  item listed.  She  asked for                                                               
any insight into this issue.   She related her understanding that                                                               
the  federal government  has taken  on this  issue but  asked for                                                               
DOT&PF's perspective.                                                                                                           
                                                                                                                                
MR. BINDER responded that the  specific report was prepared early                                                               
in 2013, when the bypass mail  funding was a significant issue at                                                               
the federal  level.   Bypass mail  funding typically  arises when                                                               
the federal government considers  budget cuts; however, Alaska is                                                               
affected  more than  Lower 48  states by  cuts since  the program                                                               
subsidizes Alaska's rural communities.   In mid-summer this issue                                                               
was tabled at the federal level  and DOT&PF has not heard further                                                               
discussion since then.  The  DOT&PF provided a "talking paper" to                                                               
brief   Alaska's  Congressional   Delegation,  which   was  first                                                               
reviewed  by  the  Parnell  administration.     The  DOT&PF  will                                                               
continue to  monitor and  review the bypass  mail issue  since it                                                               
will  adversely impact  rural Alaska  communities and  ultimately                                                               
rural consumers.                                                                                                                
                                                                                                                                
2:22:53 PM                                                                                                                    
                                                                                                                                
MR.  BINDER turned  to slide  15, entitled  "Aviation Challenges"                                                               
noting that  the DOT&PF continues  to feel  increasing regulatory                                                               
pressure  from federal  agencies.   While local  federal agencies                                                               
have been  receptive and helpful,  he pointed out  a "disconnect"                                                               
has arisen  stemming from changes in  the federal decision-making                                                               
process.  Many  decisions previously made by  local federal staff                                                               
are  being made  at higher  levels in  the federal  government by                                                               
decision-makers  with less  awareness  and  appreciation for  the                                                               
uniqueness of Alaska  and the realities Alaska  experiences.  The                                                               
DOT&PF  continues  to  work on  its  relationships  with  federal                                                               
agencies,  ensuring  that  local  federal  staff  is  briefed  on                                                               
specific issues  so they can  articulate them to  headquarters in                                                               
the Lower 48.                                                                                                                   
                                                                                                                                
MR. BINDER  outlined challenges, such as  decreasing AASP funding                                                               
for  infrastructure  improvements,   regulatory  compliance,  and                                                               
weather challenges, especially since  much depends on the ability                                                               
to  predict  winter events.    He  highlighted the  Environmental                                                               
Protection Agency's  (EPA) ban  on the  use of  urea, which  is a                                                               
deicing  agent used  as by  airports.   The new  deicing agent  -                                                               
[Cryotech] E36  - is  a little  more than  twice as  expensive as                                                               
urea and thus  far has not been as effective.   Its effectiveness                                                               
depends on the application so  airport staff has been fine-tuning                                                               
the application  procedures.   This year  significant freeze-thaw                                                               
cycles exist statewide, which impacts deicing.                                                                                  
                                                                                                                                
2:24:40 PM                                                                                                                    
                                                                                                                                
CHAIR EGAN asked whether the  DOT&PF has ever received permission                                                               
to  use the  Alaska  Marine Highway  System  (AMHS) to  transport                                                               
deicing agents, which were a concern due to toxicity issues.                                                                    
                                                                                                                                
MR. BINDER was unsure, but offered to report back.                                                                              
                                                                                                                                
2:25:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE  asked why  urea  was  banned since  it  is                                                               
commonly used  as fertilizer in the  Lower 48.  Since  it doesn't                                                               
corrode  aluminum it  is a  good substitute  for salt  on airport                                                               
runways, he said.                                                                                                               
                                                                                                                                
MR.  BINDER  answered  he  was  unsure of  the  details,  but  he                                                               
understood the directive  was an EPA ban.  He  offered to provide                                                               
more details to the committee.                                                                                                  
                                                                                                                                
2:25:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ISAACSON commented  that  he appreciated  meeting                                                               
with Mr. Binder earlier to  discuss concerns.  He appreciated the                                                               
DOT&PF's ongoing  assistance with customs in  the Northern Region                                                               
to ensure the  Fairbanks International Airport (FIA)  can be kept                                                               
open on weekends for non-scheduled international traffic.                                                                       
                                                                                                                                
2:26:24 PM                                                                                                                    
                                                                                                                                
MR. BINDER  pointed out the  DOT&PF has had success  working with                                                               
federal   agencies,    for   example,   the    Federal   Aviation                                                               
Administration (FAA) has backed off  on the 20-to-1 issue and the                                                               
Transportation  Security Administration  (TSA)  has modified  its                                                               
screening process.   He  elaborated that in  the past  TSA placed                                                               
significant pressure  on rural airports,  even though  the DOT&PF                                                               
has argued that the threat and  risk at rural airports is minimal                                                               
and  not   enough  to  warrant  imposing   some  regulations.  He                                                               
highlighted that TSA has implemented  a risk-based approach using                                                               
Alaska as the test case in places such as Barrow and Adak.                                                                      
                                                                                                                                
                                                                                                                                
CHAIR P.  WILSON commented that  passengers have  appreciated the                                                               
TSA changes since it speeds up the pre-check security process.                                                                  
                                                                                                                                
2:28:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN thanked the  department for the rural airport                                                               
tour.   He hoped  other legislators  would be  able to  visit the                                                               
airports.                                                                                                                       
                                                                                                                                
MR.  BINDER named  several rural  airports the  legislative group                                                               
visited this  past summer, including Chefornak,  Tuntutuliak, and                                                               
Kwigillingok  - often  called  Kwig.   He  encouraged members  to                                                               
participate in  future tours  of rural  Alaska since  this offers                                                               
them an  opportunity to view  first-hand the challenges  at rural                                                               
airports.                                                                                                                       
                                                                                                                                
2:29:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  related   his  understanding  that  when                                                               
Alaska  Airlines eliminates  one  plane by  adding passengers  to                                                               
flights, it represents  fewer fees to the airport  since fees are                                                               
based on  landings and not  the number  of passengers.   He asked                                                               
whether  DOT&PF has  done  any analysis  on  the impacts  smaller                                                               
planes will  have on  landings and  the fee  structure, including                                                               
anticipated  impacts   the  smaller  Bombardier   planes  serving                                                               
Fairbanks  will have  on  landing  fees.   He  recalled that  the                                                               
Alaska Airline  changes would increase  passengers by  about nine                                                               
per flight.                                                                                                                     
                                                                                                                                
MR. BINDER responded that the  proposed change would have minimal                                                               
impact since  landing fees are based  on the gross weight  of the                                                               
aircraft.   He  elaborated  that the  weight-based  cutoff is  at                                                               
12,500  pounds  and  below,  which  exempts  most  of  the  small                                                               
aircraft and  private pilots.   The landing rates are  also lower                                                               
for signatory  carriers or  those that  have signed  an operating                                                               
agreement.   Thus the rates  are a  little higher rate  for those                                                               
not signing the agreement, he said.                                                                                             
                                                                                                                                
2:32:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON asked for him to address specific fees.                                                                  
                                                                                                                                
MR. BINDER  answered that he did  not have figures for  the Q400,                                                               
but the fees  for 737s fees are currently  approximately $386 per                                                               
landing  for signatory  carriers  and 25  percent  more for  non-                                                               
signatory  carriers.   He  anticipated  the  Q400 fees  would  be                                                               
comparable since  it will  be based on  maximum weight  and there                                                               
won't be a significant change in aircraft weight.                                                                               
                                                                                                                                
REPRESENTATIVE  JOHNSON,  for   comparison  purposes,  questioned                                                               
whether the Q400 is about the same weight as the 737.                                                                           
                                                                                                                                
MR. BINDER answered  that the Q400 [Bombardier] will  be close in                                                               
weight.                                                                                                                         
                                                                                                                                
2:34:04 PM                                                                                                                    
                                                                                                                                
SENATOR FAIRCLOUGH  asked for the estimated  growth opportunities                                                               
at the airport  versus the number of landings and  take-offs.  In                                                               
other words,  she asked how  full the  traffic pattern is  and if                                                               
any opportunities for increased revenue and growth exist.                                                                       
                                                                                                                                
MR.  BINDER   understood  Senator  Fairclough   was  specifically                                                               
interested  in the  Anchorage  international airport's  capacity.                                                               
He  responded that  the overall  the AIAS  has a  large capacity.                                                               
The airline flight  schedule has several peak times  per day when                                                               
the system  is "maxed out"  such as  the "red eye."  The DOT&PF's                                                               
master plan's  phased approach will  address the peak  periods by                                                               
diverting several cargo planes to  Fairbanks or having an airline                                                               
add several  more flights  to serve Fairbanks.   This  would help                                                               
reduce peak  load times since  the system has plenty  of capacity                                                               
outside  the peak  loads.    Currently, the  peak  times may  add                                                               
slight delays,  but the system  makes up that time  very quickly.                                                               
Again,  the overall  capacity allows  plenty of  room for  growth                                                               
without any changes to the system.                                                                                              
                                                                                                                                
2:36:54 PM                                                                                                                    
                                                                                                                                
JEFF   OTTESEN,  Director,   Division  of   Program  Development,                                                               
Department  of  Transportation   &  Public  Facilities  (DOT&PF),                                                               
offered to  cover the Arctic ports  last since the topic  will be                                                               
covered by the  U.S. Corps of Engineers next week.   He turned to                                                               
slide  2  entitled  "Statewide  Long  Range  Transportation  Plan                                                               
[SLRTP]."   He explained that  the SLRTP is a  federally required                                                               
multi-modal document that  encompasses all modes in  Alaska.  The                                                               
plan requires  a wide public-involvement  that has  been expanded                                                               
to  include  a   freight  component.    This   plan  provides  an                                                               
opportunity to address any emerging  issues the state faces - one                                                               
that allows for debate to seek solutions.                                                                                       
                                                                                                                                
MR.  OTTESEN reviewed  the federal  funding rule  changes, noting                                                               
the  FHWA has  placed more  emphasis on  asset management,  which                                                               
translates to a focus on maintenance.   He offered to discuss the                                                               
level  of  funding necessary  to  repair  bridges, pavement,  and                                                               
other items in the transportation  system.  Although FHWA funding                                                               
has  been slightly  reduced, more  importantly, the  FHWA funding                                                               
changed in  terms of the  emphasis on  purposes the funds  can be                                                               
used for.   The FHWA has  emphasized "big" roads -  ones carrying                                                               
freight and  the majority of  the traffic - and  has deemphasized                                                               
roads that  are not in the  main system.  Additionally,  the FHWA                                                               
has re-emphasized safety  - having tripled the  safety dollars to                                                               
states  -  but  it  cut  programs such  as  the  Shakwak  Funding                                                               
Program, the Denali  Commission program, and much  of the funding                                                               
to  the  Indian Reservation  Road  Program.    Thus many  of  the                                                               
programs that have  been important to the state  have been zeroed                                                               
out.   Finally, the  DOT&PF will  continue to  review demographic                                                               
changes  Alaska   faces,  as  indicated   by  slide   3  entitled                                                               
"Statewide Long Range Transportation Plan (cont.)".                                                                             
                                                                                                                                
2:40:16 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON asked whether  the Shakwak funding elimination is                                                               
permanent.  She  related her understanding that  this funding was                                                               
practically considered  a treaty  with Canada.   She  related her                                                               
conversation with  the Pacific NorthWest Economic  Region (PNWER)                                                               
members earlier today,  such that about one-third  of the Yukon's                                                               
transportation funding is derived from Shakwak funds.                                                                           
                                                                                                                                
2:41:01 PM                                                                                                                    
                                                                                                                                
KIM  RICE, Deputy  Commissioner, Department  of Transportation  &                                                               
Public Facilities (DOT&PF), suggested  that the DOT&PF meets with                                                               
the Yukon government fairly regularly.   She understood the Yukon                                                               
Territory  has hired  a lobbyist  in Washington,  D.C. to  assist                                                               
them in restoring Shakwak funding.   Further, the DOT&PF has been                                                               
supportive since  most of  the traffic on  the Yukon  highways is                                                               
from Alaskans  or U.S. citizens.   She characterized  the roadway                                                               
as being  the driveway to  Alaska since  it also connects  to the                                                               
Dalton Highway.   She recalled the funding was  previously set at                                                               
$35 million per year and the  Yukon has sufficient funds to carry                                                               
out their  programs for several  years.  She reiterated  that the                                                               
DOT&PF has  been working with  Canada and  Alaska's Congressional                                                               
Delegation has  been supportive; however,  it appears to  be more                                                               
of a foreign affairs issue rather than a transportation issue.                                                                  
                                                                                                                                
2:42:16 PM                                                                                                                    
                                                                                                                                
MR. OTTESEN  related that  the University  of Alaska  Anchorage -                                                               
Institute  of Social  Research's (ISER)  research indicates  that                                                               
the state's  population will increase  about 28 percent  over the                                                               
next  20  years; however,  the  population  growth is  skewed  to                                                               
people over  the age of 60,  which is anticipated to  triple.  He                                                               
related this has significant implications  since people - ages 65                                                               
and older -  tend to lose either their inclination  or ability to                                                               
drive, which  means the state's  transit needs will  increase and                                                               
the state  will continue  to become more  urbanized.   Alaska has                                                               
often been mistakenly considered a  rural state since most of its                                                               
population  lives in  urban  areas.   The  implication for  urban                                                               
routes  will  be  challenges  to  keep  up  with  capacity.    He                                                               
characterized  the  Statewide   Long  Range  Transportation  Plan                                                               
(SLRTP)  as being  primarily a  policy  plan rather  than one  in                                                               
which  specific  projects  span aviation,  marine  highways,  the                                                               
railway, and highways.  Since the  plan's focus is more on policy                                                               
issues it  only portrays a  list of  projects that will  span ten                                                               
years based on the department's other planning documents.                                                                       
                                                                                                                                
2:43:51 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON  asked whether less money will be  spent on rural                                                               
areas or  if the "Roads  to Resources  (R2R)" funds will  make up                                                               
for some of shortfalls.                                                                                                         
                                                                                                                                
MR.  OTTESEN   answered  that  the  FHWA   federal  program  will                                                               
generally have less  money for urban and rural  communities.  The                                                               
funds  are designated  for larger  roads typically  considered as                                                               
being  part of  the National  Highway System  roads, such  as the                                                               
Dalton, Richardson,  Glenn, Seward, and  the Parks highways.   In                                                               
Southeast  Alaska, the  NHS  roads are  the  Haines and  Klondike                                                               
Highways.   Although  Egan Drive  will receive  more FHWA  funds,                                                               
funding  for roads  such as  the Glacier  Highway and  Mendenhall                                                               
Loop Road  funding will be  reduced.   For example, based  on the                                                               
formula,  Ketchikan will  be entitled  to only  receive about  $1                                                               
million per  year, which is  considerably less than  its historic                                                               
FHWA spending.   Therefore, the  FHWA funding is  insufficient to                                                               
meet the communities' needs.                                                                                                    
                                                                                                                                
2:45:43 PM                                                                                                                    
                                                                                                                                
MR.  OTTESEN  turned  to  slide  4  entitled,  "SLRTP  Steps  and                                                               
Timeline."   The  dark  line  on the  slide  indicates where  the                                                               
consultant is  at in  terms of  the timeline.   He  reported that                                                               
department  will   use  several  mechanisms  to   conduct  public                                                               
outreach  and   next  month   will  hold   the  first   of  three                                                               
transportation  stakeholder  group  meetings   -  both  live  and                                                               
webcast meetings.                                                                                                               
                                                                                                                                
2:46:09 PM                                                                                                                    
                                                                                                                                
MR.  OTTESEN  shifted  to slide  5  entitled,  "Notable  Resource                                                               
Roads" and  discussed the  first of  five active  resource roads.                                                               
First, the road  to Tanana, which is  essentially a community-to-                                                               
community road connecting Tanana to  the statewide road network -                                                               
even  though substantial  gold mining  occurs  in the  area.   He                                                               
described the new road as  a simple 12-foot wide, gravel surfaced                                                               
"pioneer road."   He  reviewed the status,  that permits  are "in                                                               
hand"  but the  project will  need some  additional rights-of-way                                                               
acquisition,  and that  some bridge  work and  clearing has  been                                                               
authorized,  but the  rest  will go  into  construction in  2014,                                                               
pending   completion  of   any  right-of-way   agreements.     He                                                               
characterized  it as  a multiple  use project  - one  that likely                                                               
will reduce  the cost of milk  in Tanana from $10-$12  per gallon                                                               
to $5-$6 per gallon.                                                                                                            
                                                                                                                                
2:47:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ISAACSON remarked that  is excited about the road.                                                               
He  asked for  clarification  on any  communications with  Tanana                                                               
since  Manley Hot  Springs also  has a  right-of-way and  Doyon's                                                               
[Limited] platforms has  begun pushing towards Tanana.   He asked                                                               
whether  the   department  has  been  working   to  complete  the                                                               
triangular loop and for a status report.                                                                                        
                                                                                                                                
MR. OTTESEN answered  that he will need to speak  to the Northern                                                               
Region's  director,  Steve  Titus,  for  more  information.    He                                                               
recalled holding one telephone meeting  with the mayor to discuss                                                               
the  bridge  project,   but  related  he  did   not  discuss  the                                                               
triangular  connection.     He   offered  to   obtain  additional                                                               
information for the committee.                                                                                                  
                                                                                                                                
2:48:33 PM                                                                                                                    
                                                                                                                                
MR.  OTTESEN continued.   He  stated that  the map  [on slide  7]                                                               
shows the proposed  route.  He referred to this  project as being                                                               
an  example  of  a   successful  rapidly-executed  community  and                                                               
resource road project.                                                                                                          
                                                                                                                                
MR.  OTTESEN  turned  to  slide   8  entitled,  "Ambler  District                                                               
Access."   He described the  Ambler Mining District as  being one                                                               
of  the world's  richest mining  districts consisting  of copper,                                                               
zinc, lead,  silver, and gold  deposits.  The DOT&PF  has already                                                               
performed  field  work  and  outreach   with  the  villages,  but                                                               
ultimately decided this  road would be best as  a "resource owner                                                               
financed"  project  since the  state  isn't  likely to  fund  the                                                               
hundreds of millions of dollars  necessary for the project.  This                                                               
decision  led   to  a   public-private  partnership   (PPP)  with                                                               
significant advantages  for the  owner, including the  ability to                                                               
pay for the road  during the life of the mine.   Thus the project                                                               
has   been  transferred   from   DOT&PF   to  Alaska   Industrial                                                               
Development  and Export  Authority (AIDEA).   He  said this  will                                                               
likely become the model in  instances in which the resource owner                                                               
needs  to  finance the  road  and  the  PPP represents  the  best                                                               
approach for these types of projects.                                                                                           
                                                                                                                                
2:50:20 PM                                                                                                                    
                                                                                                                                
CHAIR  EGAN asked  whether village  concerns have  been addressed                                                               
and if the route has been finalized.                                                                                            
                                                                                                                                
MR. OTTESEN  answered that he  has not been directly  involved in                                                               
this effort since  AIDEA is now leading the project.   He pointed                                                               
out  several alternatives  have been  discussed with  the current                                                               
route focus at  the south flank of the Brooks  Range [depicted in                                                               
red on slide 9].                                                                                                                
                                                                                                                                
2:50:54 PM                                                                                                                    
                                                                                                                                
MR. OTTESEN brought  up the third resource  project, referring to                                                               
slide 10  entitled, "Foothills West Access."   Sometimes referred                                                               
to as  the Umiat project,  it is  currently in a  holding pattern                                                               
while Linc Energy completes its  winter drilling to better define                                                               
the  prospects.   Linc Energy  has indicated  to DOT&PF  that the                                                               
company  would like  the pipeline  and the  road to  be permitted                                                               
under  a  single  Environmental  Impact Statement  (EIS)  if  the                                                               
drilling  results are  sufficiently positive,  which would  "take                                                               
the state  out of the  picture" since  DOT&PF is not  involved in                                                               
building  pipelines for  the private  sector.   He reported  that                                                               
Linc Energy would like to discuss  this further with AIDEA if the                                                               
road project moves forward, which  also suggests that DOT&PF will                                                               
likely "shed  this project."   Referring to  the map on  slide 11                                                               
entitled,  "Foothills  West  Alternatives."   He  pointed  out  a                                                               
series of  alternatives under  consideration, including  one from                                                               
Meltwater that  tie into  the road  network serving  Prudhoe Bay.                                                               
He  pointed out  three  proposed  routes link  up  to the  Dalton                                                               
Highway by either heading due east or southeast.                                                                                
                                                                                                                                
2:52:34 PM                                                                                                                    
                                                                                                                                
MR.  OTTESEN next  turned  to slide  12  entitled, "Shelter  Cove                                                               
Road" which lies near Ketchikan.   This project was funded by the                                                               
legislature in 2008  and 2012 with bond packages  approved by the                                                               
voters and  will entail constructing a  14-foot wide, single-lane                                                               
gravel road.   He described the  project as a combination  of new                                                               
road, new alignment, and upgraded  road on an existing alignment.                                                               
Several ownerships  exist for the land,  including the Department                                                               
of  Natural Resources,  the  Mental Health  Trust,  and the  U.S.                                                               
Forest  Service.   Since a  number of  resource and  recreational                                                               
sites are  on this  route it is  considered a  multi-purpose road                                                               
rather than a resource road.   He gave the status of the project,                                                               
noting a  U.S. Corp of Engineers  permit is expected in  2014 and                                                               
construction  is most  likely  to occur  in  2015, although  work                                                               
could begin if the permit is  issued sooner.  He pointed out that                                                               
the route  is difficult to  see on the  map [slide 13]  but falls                                                               
within the blue cloud-like area.                                                                                                
                                                                                                                                
2:54:00 PM                                                                                                                    
                                                                                                                                
MR. OTTESEN  next reported  on slide  14 entitled,  "West Susitna                                                               
Access Reconnaissance."   He stated  that several members  of the                                                               
legislature  expressed interest  in this  particular route.   The                                                               
department- completed a  draft report, which is due  to be posted                                                               
on the  department's website later  today.  This report  is quite                                                               
lengthy, but he offered to distribute  copies to members in a few                                                               
days.   He  suggested  that the  project  could benefit  numerous                                                               
users and will  provide access to state land,  which suggests the                                                               
route would  be more of  a public road  with multiple users.   He                                                               
stated  that at  this  time  the project  is  not  funded and  no                                                               
further work is planned.                                                                                                        
                                                                                                                                
2:55:17 PM                                                                                                                    
                                                                                                                                
CHAIR  P. WILSON  asked for  a "ballpark  figure" of  the overall                                                               
cost of the Shelter Cove Road.                                                                                                  
                                                                                                                                
MR. OTTESEN estimated the project  will cost hundreds of millions                                                               
of dollars,  although it will  depend on the  specific alignment;                                                               
however, no matter  which route is selected the road  must span a                                                               
large  crossing over  the Susitna  River, which  he estimated  to                                                               
cost $80  million.  He  said additional funds would  be necessary                                                               
if the road accessed coal fields to southwest.                                                                                  
                                                                                                                                
2:55:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ISAACSON  asked for clarification on  any minerals                                                               
and potential energy  uses in the area.  He  further asked if the                                                               
department is  working on  transmission plans  and how  the plans                                                               
are being coordinated.                                                                                                          
                                                                                                                                
MR.  OTTESEN   responded  that   the  department   had  performed                                                               
additional  work on  the report  to document  the resources.   He                                                               
described the  resources as being "many  and plentiful" including                                                               
oil,  gas,  coal,  hydroelectric,   wind,  and  geothermal.    He                                                               
indicated  that 70  to  80 different  resource  owners have  been                                                               
identified.  He said the  interest by resource owners ranges from                                                               
very  high to  the fear  that state  projects might  impact other                                                               
projects  that fall  under National  Environmental Policy  Act of                                                               
1969 (NEPA).   He concluded that lots of resources  exist and the                                                               
DNR has  expressed interest due  to access to resources,  such as                                                               
timber and potential lot sales to the public.                                                                                   
                                                                                                                                
2:58:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE commended  the DOT&PF  on the  cross-agency                                                               
work with DNR to match up  the plan, use, and potential payoff to                                                               
the state,  but the  key will  be the  location for  crossing the                                                               
Susitna River.   He suggested  that the current site  depicted is                                                               
one of the few  points on the Susitna River to  cross to the west                                                               
side.  Since this  lies west of the mouth of  the Yenta River, it                                                               
would eliminate  the need  to cross  that drainage  as well.   He                                                               
said he appreciated the efforts the department has made.                                                                        
                                                                                                                                
2:59:32 PM                                                                                                                    
                                                                                                                                
SENATOR FAIRCLOUGH  asked whether  the department is  required to                                                               
prepare the  Statewide Transportation Improvement  Program (STIP)                                                               
annually under federal requirements.   In response to a question,                                                               
she clarified  she thought his  earlier testimony  indicated that                                                               
the department conducted the plan annually.                                                                                     
                                                                                                                                
MR.   OTTESEN   answered   that    the   Statewide   Long   Range                                                               
Transportation  Plan (SLRTP)  must  be updated  every five  years                                                               
whereas the  STIP must  be updated  every two  years with  a four                                                               
year  horizon.    Additionally,  the STIP  must  be  aligned  and                                                               
consistent  with  the  SLRTP,  but both  plans  are  required  by                                                               
federal agencies.                                                                                                               
                                                                                                                                
3:01:25 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committees, the joint                                                                
meeting of the Senate and House Transportation Standing                                                                         
Committees was adjourned at 3:01 p.m.                                                                                           

Document Name Date/Time Subjects
2013 DOT Milestones.pdf HTRA 1/23/2014 1:00:00 PM
DOT Joint Transp Program Updates 1 23 14.pdf HTRA 1/23/2014 1:00:00 PM
DOT Joint Transpo Department Overview 1 23 14.pdf HTRA 1/23/2014 1:00:00 PM
DOT Joint Transpo Aviation Overview 1 23 14.pdf HTRA 1/23/2014 1:00:00 PM